Construction bond claims can occur under different scenarios. For example, a performance bond claim can be filed if the general contractor defaults or fails to complete the project as promised. A payment bond claim, on the other hand, can happen when a general contractor fails to pay subcontract...
(Insured) then becomes entitled to claim the payment from Insurer. However, GTC butchered the conventional perception of insurance and had introduced an extraordinary method in which, while Policyholder pays the premium, Beneficiary makes demand upon surety and Surety recoups its damages fro...
The guarantee shall be in form of providing cash orsurety, establishing mortgage or pledge. 担保的方式为提供现金或者保证 、 置抵押或者质押. 期刊摘选 Including bid guarantee, contractorsuretybond guarantee, contractor payment guarantee, payment guarantee , cash warranty guarantee, etc. ...
What Is a Payment Bond Claim? If during the course of a project, an issue arises involving the payment of a subcontractor, supplier, or other party, the wronged party can file a claim on the payment bond. If the claim is valid and a breach of contract has occurred, then the surety th...
This happens many times when a payment bond claim is made. A general contractor usually has little to no idea if a subcontractor has not paid one of their subcontractors or material suppliers. This is especially true if the general contractor has already paid their direct subcontractor. Thus, ...
amount equals your liability and is the bond's penal sum. The premium you will pay for the bond will be a percentage of the total amount. However, if a claim is filed against your bond and you fail to pay it, you can be held liable for up to the maximum amount of your bond. ...
commence and prosecute any claim, suit, or other proceeding against the surety and principal, or either of them, without the necessity of joining the owner(s) or operators of the exploration project(s) or mining operation(s) covered by the permit; and 10. WHEREAS if the principal fails...
This post is part of a series sponsored by Old Republic Surety. When contractors have a project that is in danger of default, they sometimes mistakenly believe that their surety bond is equivalent to an insurance policy. They also may … ...
The Surety (the insurer) is the third party who provides the bond, mainly in the form of a First Demand Guarantee, so that if the Principal does not meet the contract terms, the Obligee can claim on the bond to recoup their losses. The Surety pays the value of the bond to the Oblig...
Here's how it works. The principal is responsible for securing the surety bond, which must abide by certain conditions, including the total amount owed. If the principal defaults or breaks the contract, the obligee, who is owed the money, can file a claim seeking restitution. The surety (...